The Federal Government on Thursday raised N138.17 billion in Treasury bills at lower yields from its last auction after it received almost three-times the level of subscription for the notes.
Total bids for the bills stood at N401.91 billion, the results showed.
The interbank market has been awash with liquidity in last week. The Central Bank of Nigeria (CBN) has been pumping in cash to stimulate lending and stave off a recession after second quarter growth slowed owing to a persistent drop in oil prices and currency controls.
Auction results showed investors had demanded as high as 12.50 percent to hold the 3-month paper, 13.50 percent for the 6-month note and 15.2 percent for the one-year bill.
But the CBN paid 10.82 percent for the one-year note to raise N66.39 billion, compared with 12.50 percent at its previous auction.
The three-month paper was sold at a yield of 8.49 percent, down from 10 percent at the last auction, to raise N36.79 billion, while it auctioned N35 billion of six-month bills at 10.15 percent compared with 12.20 percent previously.
Traders said local investors continued to book profits from their bond positions on Thursday as liquidity was shrinking, lifting yields for the 5-year maturity up by 20 basis points on the secondary market.